Government securities (G-Secs) are debt instruments issued by the government to borrow money.

The government of India may issue from time to time the following types of Government Securities:

• Securities with fixed coupon rates: The securities will carry a specific coupon rate ( rate of interest paid by bond issuers on the bond’s face value) remaining fixed during the term of the security and payable periodically.
• Securities with variable coupon rates, viz, Floating Rate Bonds: The Security will carry a coupon rate which will vary according to the change in the Base Rate to which it is related.
• Zero-Coupon Bonds: Zero-Coupon Bonds are issued at a discount and redeemed at par. No interest payment is made on such bonds at periodic intervals before maturity.